Tengah’s Cooling System Is Going Into 14,000 Homes. Here’s What the Sales Pitch Leaves Out.
HDB awarded Keppel a second chilled water supply contract on 15 April 2026, covering nine more Build-To-Order projects in Tengah’s Brickland, Park and Forest Hill districts. That is roughly 10,000 more households, on a 20-year contract. Add the three projects Keppel won in September 2024 and about 14,000 households across 12 Tengah projects will be offered a Centralised Cooling System instead of a conventional aircon. The number that gets repeated in every writeup is that CCS uses up to 30 per cent less energy. We went and checked what that actually costs a household, using the published rates, and the answer is not the one the number implies. What CCS is, quickly Rooftop chiller plants make chilled water. That water is piped down risers, into your flat, and through fan coil units mounted on your walls. A valve opens, water flows through the coil, a fan blows across it, the room gets cold. The warmed water goes back up to the plant. There is no condenser. Nothing on your ledge. No refrigerant in your flat at all. If you take CCS, HDB still builds you an aircon ledge, so opting out and installing a conventional system remains possible. The 30 per cent is real. It is also not your electricity bill. A big centralised chiller plant is more efficient than fifty small condensers. That is straightforward engineering and we have no quarrel with it. The catch is who that efficiency belongs to. You do not buy electricity for your cooling under CCS. You buy chilled water, at a rate the operator sets and publishes quarterly. Whatever the plant saves on energy, what lands on your bill is that rate multiplied by how much cooling you used. The efficiency of the plant is an input to how the rate gets calculated, not a discount applied to your invoice. So the honest comparison is not efficiency against efficiency. It is dollars per unit of cooling. The comparison, at today’s published rates Chilled water is metered in kilowatt-hours refrigeration, written kWrh. One kWrh is one unit of cooling delivered into your flat. SP Group’s residential chilled water rate for Tengah in Q3 2026 is 10 cents per kWrh, or 10.90 cents with GST. For a conventional aircon, the cost of one unit of cooling is the electricity price divided by the system’s coefficient of performance. COP is how many units of cooling you get per unit of electricity. Since 1 July the household electricity tariff has been 34.78 cents per kWh including GST. How the cooling is produced Cost per unit of cooling, with GST CCS chilled water, SP rate, Q3 2026 10.90 cents New 5-tick multi-split at its rated COP of 5.5 6.32 cents The same system running at a real-world COP of 4.5 7.73 cents An older or poorly maintained system at COP 3.5 9.94 cents A neglected non-inverter system at COP 3.0 11.59 cents The break-even sits at a COP of about 3.19. Above that, a conventional system delivers cooling more cheaply than CCS. Below it, CCS wins. Every multi-split system legally sold in Singapore today is rated at a COP of at least 5.50, because that is the minimum performance standard. Real-world performance is always below the rated figure, sometimes well below, but a maintained modern system does not fall to 3.19. Two things make that comparison slightly kinder to CCS than the table shows. Your fan coil unit’s fan still draws electricity, billed separately on your own account, so add a little to the CCS side. And rated COP is a lab number. Two things make it harsher. A conventional system’s COP already includes its own fans. And the tariff cuts both ways, which brings us to the interesting bit. The rate did not move on 1 July Electricity went up 17 per cent on 1 July 2026. Every household on the regulated tariff felt it. SP’s chilled water rate did not move at all. Period Rate before GST With GST Q4 2023 20.38 cents (as reported at the time) Q1 2024 13.20 cents 14.39 cents Q2 2024 12.20 cents 13.30 cents Q3 2024 through Q3 2026 10.00 cents 10.90 cents Eight consecutive quarters at 10 cents, straight through a 17 per cent jump in the electricity price. That is genuinely notable, because SP’s own published formula says the rate reflects, among other things, the prevailing residential electricity energy charge. It has not tracked it. CCS subscribers in Tengah were insulated from the tariff hike that everyone else absorbed. Before 1 July, the break-even COP was about 2.73. Now it is 3.19. The tariff rise closed a chunk of the gap without CCS households paying anything for it. But look at how that rate got to 10 cents In October 2023 the rate was 20.38 cents per kWrh. More than 150 Tengah residents signed a petition to the Prime Minister on 27 October that year, raising both the charges and the fees for cancelling. SP waived usage charges to 31 December, cut the rate to 13.2 cents from 1 January 2024, then to 12.2 cents, then to 10 cents. SP had also revised its published life-cycle savings estimate from 30 per cent down to 17 per cent before restoring the 30 per cent figure once the rate came down. One resident quoted in The Straits Times at the time made the point better than we can. If the operator can move the rate that far that fast, what stops it moving again. Nothing does. The rate is reviewed quarterly and the formula includes electricity, water prices, water borne fees, the Consumer Price Index, and the capital and operating cost of the plant. That is a lot of moving parts, and unlike the electricity tariff, there is no EMA sitting over it setting the methodology in public. The stability since mid-2024 has been good for subscribers. It is not the same thing as a guarantee. If you are buying now, you are not dealing with SP This is











